Q: A 20-year mortgage set up for uniform monthly payments with 6 percent interest compounded monthly is…
A: Answer in step 2.
Q: What do the Cash-equivalent items include?
A: Cash Equivalents are those items which can easily convertible into cash. They have high liquidity…
Q: Describe what is the Compound-Amount Factor?
A: The money is anything which is accepted by the society as a medium of exchange and has the main…
Q: College Financial Sources, which makes small loans to college students, offers to lend $500. The…
A: Given: P=500 A=40 n=16 i=?
Q: Two annuity dues in perpetuity have a common present value of $2, 000 and a common effective annual…
A: Annuity: An annuity is a finance product that enables you to receive a fixed payout for the rest of…
Q: How long in years will money double its amount if invested at 10% simple interest?
A: Given interest r= 10%
Q: Interest can be computed more frequently than one time a year Select one: O True O False
A: Interest is the price of money that is borrowed.
Q: A bank is offering a loan of $10,000 with a nominal interest rate of 6% compounded monthly, payable…
A: The nominal interest rate can be any declared rate of interest. The effective rate of interest is…
Q: Calculate the effective annual interest rate for continuous compounding?
A: The effective annual interest rate , also called effective annual rate (EAR) is the real return on…
Q: How long will it take for a money to quadruple itself if invested at 12% simple interest rate.
A: The future value in the case of simple interest is calculated by the following formula. A = P ( 1 +…
Q: What is the effective interest rate per month if the interest rate is 9% compounded continuously?
A: The effective interest rate refers to the rate of interest that paid on an investment after to take…
Q: Define the term effective semiannual interest rate?
A: The interest is the income generated by the capital in the economy. The interest is the amount paid…
Q: How can we compute the effective interest rate for any duration of time?
A: The effective interest rate refers to the rate of interest that is paid on an investment or loan or…
Q: t refers to the length of time over which interest is charged or earned. a Compounding Period…
A: Any amount which is deposited today referred as principal and there is some interest that is earned…
Q: An annuity is a series of equal payments occurring at equal time intervals, normally at the end of…
A: Annuities can be considered as financial products whose purpose is to enhance and improve security.
Q: At what rate of interest, compounded annually will an investment triple itself in 8 years?
A:
Q: Alfred desired 9,000 as the proceeds of a 90-day loan from B who charges 5% interest in advance.…
A: Given, Loan amount = 9,000 Time = 90 days Interest rate = 5%
Q: This refers to the time unit for rate of return. a. Compound Interest b. Simple Interest c.…
A: The rate of return refers to the accumulated amount on an investment or a loan or a deposit after…
Q: An amount F is accumulated by investing a single amount P for n compounding periods with interest…
A: INTRODUCTION What is COMPOUND INTEREST Compound interest (or compounding interest) is calculated at…
Q: %, compounded bimonthly. What future amount is due at the end o an period? Draw a cashflow diagram…
A: Future worth is the worth of a resource at a particular date. It estimates the ostensible future…
Q: How is a Compounding Period determined?
A: A compounding period can be considered as the span of time between when was last interest was…
Q: A person deposits 2500$ today in the bank and he wants to get double of this amount, if the interest…
A: Simple interest formula : Interest = [Principal * Rate of interest * Number of years] / 100
Q: Determine the value of each of the following annuity factors. а. (P/A, 4%, 8) b. (A/P, 14.5%, 10) с.…
A: * SOLUTION :- Based on given information the calculation are as follows.
Q: A man borrowed P280,000 and agrees to pay the loan at the end of each month for 48 months at 1.5%…
A: Given Borrowed amount P=280,000 Interest rate =1.5% compounded monthly. Time (n) = 48 months
Q: A department store has offered you a credit card that charges interest at 1.53% per month,…
A: Nominal interest rate and the effective annual rate are calculated as follows:-
Q: if I loaned 167,795 today and promised to pay it back after 5 years to the bank with monthly…
A: In economics, present value refers to the current value of a future stream of cash flow. Future…
Q: A saving association pays 2% interest monthly. What is the effective annual rate of interest?
A: Effective annual interest rate = [1 + (i/n)]n - 1
Q: How can we calculate the effective interest rate, altering the period value?altering the period…
A: The effective interest rate refers to the rate of interest that is paid on an investment or loan or…
Q: Anika wants to invest $200 a month at 4.25%/a compounded monthly for 10 years. a) b) What will be…
A: Regular payments given at the conclusion of each term, such as monthly or quarterly, make up a…
Q: Find the interest on the loan if Tim borrows $10,000 for years at a simple interest of 10%.
A: The investors as well as consumers borrow or take loans funds from banks for investment or for…
Q: At what simple interest rate: a) Will $20,000.00 rise to $21,100.00 in one year? b) Will $720,000.00…
A: We have given (a) Present value of money P= $20,000.00 Future value F= 21,100.00 and time = 1 year…
Q: What is the ammount of interest earned on $10,000 for 12 years at 9% simple interest per year?
A: Simple interest is a method to calculate the amount of interest charged on a sum at a given rate and…
Q: You invest 10,000 pesos for 3 years and get 10% interest compounded at the end of each year. What is…
A: We use the compound interest formula to calculate future value after 10 years.
Q: the amount payable on the
A: "Answer:
Q: Calculate interest on a 90-day $5,000
A: Given, Time = 90 days (consider 360 days in a year) Interest = 11% Principal = $5000
Q: What is equal-payment-series present-worth factor?
A: Answer - Equal Payment - Series worth factor - This help investor to calculate how much money need…
Q: Shalika puts $650 into a savings account that pays 3.2% interest per year, compounded annually. What…
A: Given Shalika puts 650 into account today that means present value P= $650 Rate of interest i=3.2%…
Q: Find the amount of ordinary annuity of P 65,000.00 every three months for 5 years if money is worth…
A: Amount = 65000 every quarter Time = 5 years Interest rate = 10 % compounded quarterly Quarterly…
Q: A bank offers 1.2% per month. What is the effective interest rate if compounded monthly?
A: The effective rate of interest is the return on a savings account or an investment, whose interest…
Q: What uniform annual amount should be deposited each year in order to accumulate 1,000,000 at the end…
A:
Q: What factor will convert a gradient cash flow ending at t = 8 to a future value? The effective…
A: Given data: Time, t = 8 Future value = FV Present value = PV Effective interest rate, i = 10%
Q: What effective annual interest rate corresponds to the following situations? nominal interest rate…
A: a. Effective annual interest rate = 1+inn-1=1+5%22-1=1+0.0522-1=1.0252-1=1.050625-1=0.050625=5.0625%…
Q: A loan of P7000 is made for a period of 15 months at a simple interest rate of 15%. What future…
A: The two methods used to calculate the interest on loans are simple interest and compound interest.…
Q: How many years would it take to take an investment of $28,000 to double 11% annual interest?
A: Present amount is 28000 and future amount is 2*28000 with rate of interest of 11%
Q: Investments Jack invests $1000 at a certain annual interest rate, and he invests another $2000 at an…
A: Let the interest rate at which $1,000 has been invested be x% Then, the interest rate at which…
Q: Your mortgage compounds interest annually at an interest rate of 3.1%. If your loan was for…
A: Interest paid after 5 years= 115438.789
Q: What type of interest is obtained when the nominal interest rate is divided by the number of…
A: Nominal interest rate is the cost of borrowing for the person who borrow money and income for , who…
What is the effective annual interest rate?
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- Bobby was desperate. He borrowed $600 from a pawn shop and understood he was to repay the loan starting next month with $100, increasing by $10 per month for a total of 8 months. Actually, he misunderstood. The repayments increased by 10% each month after starting next month at $100. Use a spreadsheet to calculate the monthly interest rate that he thought he was to pay, and what he actually will pay.Ella Stein paid $187.50 interest on a loan of $12,000 for 3 months. What was the rate of interest she paid?At what rate of interest will an investment double itself in 10 years?
- Mr. Benedito, a grocery store owner, borrows $50,000.00 from a loan shark, handing him a $77,000.00 promissory note with a maturity of 6 months. What is the annual and monthly simple interest rate charged by the loan shark?It is the amount payable on the maturity date.What is the maturity date of a loan taken out on September 9, 1998 for 125 days?
- What is the compounding process?You borrow $500 from a family member and agree to pay it back in six months. Because you are part of the family, you are only being charged simple interest at the rate of 0.5% per month. How much will you owe after six months? How much is the interest?How is a Compounding Period determined?
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